Student Loans in India: A Complete Guide for 2025

 


Student Loans in India: A Complete Guide for 2025


By Ganesh @ RupeeWise


Higher education in India is getting expensive — whether it's a private MBA, an engineering degree, or studying abroad. For most students, education loans (student loans) are the only way to afford it.


But don't worry — student loans are more accessible than ever in 2025, with better interest rates, repayment options, and government support.


Here’s everything you need to know before taking a student loan in India.



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1. What Is a Student Loan?


A student loan is money borrowed from a bank or NBFC to pay for higher education. You repay it after finishing your course, usually with interest.



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2. What Expenses Are Covered?


Most Indian education loans cover:


Tuition fees


Hostel and mess charges


Books, laptop, and study materials


Travel (for abroad studies)


Exam and library fees




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3. Eligibility for Student Loans


You must:


Be an Indian citizen


Have secured admission to a recognized course (in India or abroad)


Have a co-applicant (usually a parent or guardian)


Provide documents like admission letter, fee structure, KYC, income proof, etc.




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4. Top Banks Offering Student Loans in India (2025)


> Note: Public banks usually offer lower interest rates and better terms.





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5. Collateral vs. Non-Collateral Loans


Collateral Loans: You offer security (like property or FD). Usually for loans above Rs. 7.5 lakh.


Non-Collateral Loans: No security required. Offered up to Rs. 7.5–10 lakh depending on the lender.




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6. Moratorium Period (When You Don’t Pay)


Most student loans come with a moratorium period — meaning:


No EMI while you study


Extra 6–12 months after your course to start repaying



> Interest may still be added during this period, so plan ahead.





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7. Government Schemes You Should Know


Vidya Lakshmi Portal: One-stop portal to apply for multiple bank loans.


CSIS Scheme: Interest subsidy for economically weaker sections (EWS) during the study period.




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8. Repayment and Tax Benefits


Repayment usually starts 1 year after course completion or 6 months after getting a job


You get tax deduction under Section 80E for interest paid on education loans — no upper limit!




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Final Thoughts:


Student loans can be a smart investment in your future — if used wisely. Compare banks, understand the terms, and always borrow only what you need.


Remember: It’s not a free ride, it’s a future plan.



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